RESTON, Va., Nov. 10, 2009—At today’s Lexington Institute policy forum on the future of the federal student loan program, Sallie Mae Vice Chairman & CFO Jack Remondi reiterated the company’s support for reforming the program and making college more affordable. He also noted that Sallie Mae remains committed to “doing everything possible” to ensure that the company continues to meet the federal student loan needs of every student at every school through June 30, 2010 and beyond.
When discussing the reform alternative backed by 30 industry participants, Remondi noted that the Community Proposal is the only proposal that creates savings for additional Pell Grants in the 2010/2011 academic year as any delay in implementation of the Administration’s proposal jeopardizes up to $10 billion in savings. Forum panelists, including advocates of the Administration’s proposal, agreed that pressure being placed on schools to transition now to the Direct Loan Program is driven by concern that delayed enactment or implementation of the Administration’s proposal puts the estimated taxpayer savings and proposed Pell Grant increases at risk.
Remondi highlighted that the sole issue in the debate over the future of the federal student loan program is whom taxpayers should hire to deliver and service loans to students and parents: an open marketplace where many entities compete for business, or the Department of Education. When considering that choice, he asked students, schools, taxpayers and lawmakers to consider who will deliver a better service with more features, who will work harder to meet students’ and schools’ changing needs, and who will better manage the expected $1 trillion in student loans that will be made over the next 10 years.
Remondi also emphasized that the Community Proposal produces $87 billion in mandatory savings and avoids transition risk for millions of students and thousands of schools.
A replay of the Webinar is available at www.visualwebcaster.com/student-loan-policy.
Additional information is available on the Lexington Institute’s Web site (www.lexingtoninstitute.org). More information about the Community Proposal is available at www.studentloanfacts.org.
For more information contact:
Martha Holler (703) 984-5178
Conwey Casillas (703) 984-5587
SLM Corporation (NYSE:
SLM), commonly known as Sallie Mae, is the nation’s leading saving, planning and paying for education company. Sallie Mae’s saving programs, planning resources and financing options have helped more than 31 million people make the investment in higher education. Through its subsidiaries, the company manages $176 billion in education loans and serves 10 million student and parent customers. In addition, the company’s Upromise program has enabled 11 million members to earn more than $525 million in rewards to help pay for college. Its Upromise affiliates also manage more than $23 billion in 529 college-savings plans. Sallie Mae offers services to a range of institutional clients, including colleges and universities, student loan guarantors and state and federal agencies. More information is available at
www.SallieMae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.